Columbus Gold Corporation

Published : June 14th, 2012

Columbus Gold

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Columbus Gold Provides Update on Nevada Activities

Vancouver, British Columbia, Canada, June 14, 2012. Columbus Gold Corporation (CGT: TSX-V) ("Columbus Gold") is pleased to provide the following update on its Nevada activities.

Columbus Gold continues to evaluate a number of different options respecting the possible spin-out of its non-core assets including its Nevada project portfolio (see Columbus Gold news release dated April 2nd, 2012), however in the interim it continues to operate in Nevada in the normal course of business.

CORDEX AGREEMENT

The agreement that governs Columbus Gold's relationship with Cordilleran Exploration Company LLC ("Cordex") has been extended to December 31, 2014. Cordex designs and carries-out generative and mineral exploration activities in Nevada and elsewhere in the United States exclusively for Columbus Gold. A full copy of the Cordex Agreement is available on SEDAR at www.sedar.com.

NEVADA DRILLING AND EXPLORATION ACTIVITY

Browns Canyon

Columbus Gold completed a drill program in January 2012 at its Browns Canyon gold project, consisting of 3,461.89 meters (11,358 feet) in 17 RC drill holes. Browns Canyon is located approximately 20 km (12 miles) west of Barrick Gold's Archimedes open pit gold mine, in the highly prospective Battle Mountain Gold Trend of Nevada. The project is 100% controlled by Columbus Gold subject to underlying royalties.

Assay results greater than 0.10 gpt gold include:

 


Drill Hole

Azimuth / Inclination/Depth in meters

Interval in meters

From (m)

To (m)

gpt Gold

BN 9

W / 60�/190

6.1

24.4

30.5

0.341

BN 10

W / 60�/245

4.57

126

131.1

0.230

BN 11

W / 60�/227

7.62

45.7

54.3

0.809

Incl

 

4.57

45.7

50.3

1.140

BN 12

W / 60�/215

12.2

27.4

39.6

0.671

Incl

 

3.0

29

32

1.563

BN 13

W / 60�/190

3.0

7.6

10.7

0.442

BN 14

W / 60�/160

3.0

16.8

19.8

0.288

BN 15

W / 60�/174

6.1

7.6

13.7

0.929

BN 17

W / 60�/239

9.15

122

131.2

0.433

BN 19

W / 60�/221

9.15

59.5

68.6

0.794

Incl

 

1.5

   

1.704

BN 23

W / 60�/189

1.5

125

126.5

0.398

This drilling program established that gold mineralization at Browns Canyon appears stratiform and occurs along two gently dipping, stratigraphic horizons, one at the contact of clastic Mississippian siltstones and sandstones and the underlying Devonian limestone, and another along the top of a limestone interbed in the Mississippian clastic rocks, 30 meters (98 feet) above the Devonian contact. The mineralization as drilled extends for about 900 meters (2,953 feet) of strike, and down dip for 100-150 meters (328 - 492 feet) from the surface, and remains open to the northwest on strike. A second phase of drilling, planned for 2012, will attempt to extend the gold mineralization along strike and test other geochemical and geological targets at Browns Canyon.

Quality Assurance/Quality Control

Gold assays were determined by fire assay with an AA finish at American Assay Laboratories in Sparks, Nevada. American performed internal check assaying on about 7% of the samples, and also included analyses of internal standards inserted into the sample string. In addition, check analyses are in progress on a duplicate second split on a further 10% of the samples. The second split was collected at the drill rig during drilling, at the same time as the first, and retained for check assaying. Any significant variations from the check sampling program will be reported at a later date.

Weepah

Partner, Sniper Resources Ltd., ("Sniper") completed a 497 meters (1,630 feet) Phase I angle drilling program at Columbus Gold's Weepah gold property in February 2012, comprising of 8 shallow RC drill holes. The program was successful in extending and confirming continuity of the mineralization discovered in January 2011 by Columbus Gold (for detailed results of Columbus Gold's January 2011 drill program, please refers to Columbus Gold's February 22, 2012 news release). All 8 of Sniper's Phase I holes returned significant gold intercepts and the results were very encouraging, according to Sniper. The highest assay over a 5 foot sample interval was 21.800 grams/Tonne (0.636 oz. Au/ton, and the longest continuously mineralized interval was 47.2 meters (155 feet). The true thickness and orientation of the gold mineralization remains uncertain but these results demand further work. Results from all 8 holes were summarized in Sniper's March 8, 2012 news release.

Sniper reported on April 24, 2012 that a Phase II follow-up drill program has commenced. The Phase II drill program consists of 8 to 12 RC holes which has three primary goals:

  • To continue to fill in, extend, and determine the edges of gold mineralization discovered in drilling conducted by Columbus Gold in January 2011 and by Sniper in its Phase I drill program.
  • The Phase II drill program will be conducted to a drill hole spacing designed to enable the calculation of a National Instrument 43-101 resource estimate by an outside contractor, subject to the results of the drill program.
  • To test different areas of the property to determine if additional concealed, low-angle, mineralized structures are present under the shallow alluvial cover.

Sniper's news releases respecting the above can be viewed on their website at www.sniperresources.com.

The Weepah gold project is located in northern Esmeralda County approximately 32 km (20 miles) southwest of Tonopah, Nevada. Subject to underlying royalties, Columbus Gold controls a 100% interest in Weepah. Sniper can earn an initial 51% interest by completing $3 million in exploration expenditures.

Guild

Sniper reported in its December 6, 2011 news release that 3 RC drill holes it drilled at Columbus Gold's Guild gold property in early 2011, and an historical trench that was excavated prior to Sniper's involvement in the property, contained significant intervals of potentially leach-grade gold, beginning at surface and hosted within oxide rocks.

A follow-up exploration program carried-out by Sniper in 2011 to test for possible extensions of the trench mineralized zone, as well as to explore to the southeast into another undrilled area, consisted of the excavation of four trenches for a total combined length of 118.9 meters (390 feet) and 4 RC drill holes for total footage of 359.7 meters (1,180 feet).

The trench and drill results confirm the presence of anomalous gold along the interpreted strike direction both northwestward and southeastward from the recent discovery area. They indicate the mineralization remains open in at least two directions and although the values encountered in the programs were lower grade than those encountered in the original drilling and trenching, the results support undertaking further work on the property to explore for higher grade mineralization.

Sniper's news releases respecting the above can be viewed on their website at www.sniperresources.com.

Subject to underlying royalties, Columbus Gold controls a 100% interest in Guild. Sniper can earn an initial 51% interest by completing $2 million in exploration expenditures.

Overland Pass

Sniper reported the completion of a Phase II drilling program which commenced in January 2012 at Columbus Gold's Overland Pass gold project located immediately north of Barrick's Bald Mountain Mine. The RC drill program, which was comprised of 18 drill holes from 14 drill sites, with a total drilled footage of approximately 2,225.04 meters (7,300 feet) was designed to offset known oxide mineralization encountered in earlier drilling (Sniper drilled 13 holes at Overland Pass during the winter of 2006-2007) to test undrilled surface geochemical anomalies, and to evaluate favourable host stratigraphic horizons at shallow depth from surface in several different areas. Results from 3 reported drill holes suggest continuity of stratigraphically controlled mineralization between the area of 2 Sniper holes and earlier drilling several hundred feet to the west, and widen the mineralized zone's footprint to approximately 400 feet. Results are still pending for 2 holes.

For detailed results from the Phase II drilling program, please see Sniper release dated February 22, 2012 which is available on their website at www.sniperresources.com.

Subject to underlying royalties, Columbus Gold controls a 100% interest in Overland Pass. Sniper can earn an initial 51% interest by completing $2 million in exploration expenditures.

Laura

Sniper reported in a June 29, 2011 news release that limited historical exploration has taken place on the Laura gold property, despite its proximity to major gold deposits; only 6 shallow holes totaling 651 meters (2,136 feet) were drilled on the claims, during the early 1990's. A best intercept of 9.1 meters (30 feet) of 0.70 gpt gold (0.020 oz. Au/ton) hosted in "jasperoid breccia" was reported to be present in one of the holes.

A new road constructed to provide access to Barrick's nearby Cortez Hills Operations, has exposed a zone of upper plate mudstone and chert on the Laura claims that is believed by Sniper to represent the mineralized structure that was encountered in the drill hole indicated above. Geochemical samples have been taken by Sniper from this zone and results are pending.

Sniper's news releases respecting the above can be viewed on their website at www.sniperresources.com.

Laura is located within the Cortez sector of the Battle Mountain Trend, about 2.6 km (1.6 miles) southwest from Barrick's Cortez Hills Mine and 11 km (7 miles) south of their Pipeline/Gold Acres complex. Subject to underlying royalties, Columbus Gold controls a 100% interest in Laura; however Sniper can earn a 70% interest by making cash and share payments to Columbus Gold.

Utah Clipper

Partner Navaho Gold Ltd., (Navaho") drilled one Diamond drill hole for a total of 1,153.8 meters (3,785 feet) at Columbus Gold's Utah Clipper gold project located directly adjacent to Barrick Gold's multi-million ounce Pipeline-Gold Acres gold mine complex, in the Cortez-Pipeline sector of the Battle Mountain Gold Trend, Nevada.

Highlights of the drilling as reported by Navaho include:

  • Silver anomalous throughout the hole with zones of up to 65.1 g/t intersected.
  • Two zones of gold mineralisation intersected.
  • Widespread elevated pathfinder geochemistry indicative of proximal Carlin-style mineralization intersected.

Navaho has informed Columbus Gold that they believe that further exploration, including a second drill-hole is warranted on the property given the close proximity to world-class gold operations, a defined target with surface geochemistry potentially indicative of Carlin style mineralisation at depth and encouragement from the first hole. Consideration is being given to using the rotary mud drilling method to reduce cost.

Navaho's news releases respecting the above can be viewed on their website at www.navahogold.com.

Subject to underlying royalties, Columbus Gold controls a 100% interest in Utah Clipper. Navaho can earn an initial 51% interest by completing $3 million in exploration expenditures.

White Horse Flats

Navaho drilled 11 RC holes for 2,206 meters (7,237 feet) in late 2011 at Columbus Gold's White Horse Flats gold project. Navaho has informed Columbus Gold that the drilling, together with historical results, has defined a potential 1,700 meters (5,577 feet) long zone of gold mineralization under shallow cover (see Navaho's news release dated February 13, 2012).

Further surface sampling including rock chip sampling and follow-up drilling are planned by Navaho in 2012 to test the extent and controls of the gold mineralization. The White Horse Flats project is located 43 km (27 miles) south of Wendover, Nevada. The property is 13 km (8 miles) east of the Kinsley Mine, which has reported past production from a Carlin-type deposit.

Navaho's news releases respecting the above can be viewed on their website at www.navahogold.com.

Subject to underlying royalties, Columbus Gold controls a 100% interest in White Horse Flats. Navaho can earn an initial 51% interest by completing $3 million in exploration expenditures.

Bolo, Eastside, Petes Summit, Combs Peak and Hughes Canyon

Columbus Gold has received drill permits for a second phase of drilling at Eastside and a first drill program at Hughes Canyon. In addition, plans of operations and attendant environmental studies for drilling at Bolo and Petes Summit have been approved by the US Forest Service and, as soon as bonds are agreed and placed, the drill permits for 79 drill sites (allowing for +200 holes) at Bolo and 12 drill sites at Petes Summit will be issued. The Bolo and Petes Summit final permits are expected in mid to late June 2012. At Combs Peak, Geological mapping and preliminary sampling has been completed. Grid geochemical sampling is in progress to delineate drill targets.

PROPERTY ACQUISITIONS

Columbus Gold's ongoing prospecting and generative work has led to the staking of two additional gold projects in Nevada, Big Lime and Chaos Creek. Columbus Gold now controls 27 gold projects in Nevada of which 10 are farmed-out or leased to third parties.

Big Lime

Thirty-one claims have been staked by Columbus Gold at the Big Lime gold project, located in Lincoln Co., Nevada, 113 km (70 miles) north-northeast of Las Vegas, Nevada.

Columbus Gold's reconnaissance sampling yielded a sample containing 2.8 g/t gold in silicified Cambrian limestone bed. The strike length of the silicification appears to exceed 600 meters (2,000 feet). The silicified bed was trenched, and possibly drilled in the 1980's, but no data of past work has been located.

At Big Lime, the target of interest to Columbus Gold is covered by silty and shaly Cambrian rocks, both stratigraphically above and below the silicified horizon. Preliminary reconnaissance sampling of shaly float in covered areas on the claims has yielded values of 0.30 g/t gold. Geologic mapping and further sampling is in progress.

Chaos Creek

Fifty-six claims have been staked by Columbus Gold at the Chaos Creek gold project, located 129 km (80 miles) northeast of Tonopah, Nye Co., Nevada.

Reconnaissance sampling by Columbus Gold in altered Tertiary volcanic rocks yielded gold values up to 0.30 g/t. Government mapping programs have suggested this area consists of nested volcanic centers and calderas.

Detailed geologic mapping and sampling are in progress. Columbus Gold is focusing on structural zones, up to 600 meters (2,000 feet) long, marked by barite veins containing oxidized sulfide casts that have recently been discovered on the claim block. Assays are pending on this material. The property has never been drilled.

DISSOLUTION OF FARMED-OUT PROJECTS

Roscan Minerals Corp. has given notice of termination respecting its option to earn into Columbus Gold's Golden Mile gold project located in Mineral County, Nevada. Columbus Gold continues to hold the property.

Navaho has given notice of termination respecting its option to earn into Columbus Gold's Stevens Basin gold project located on the prolific Battle Mountain Gold Trend of Nevada. Columbus Gold continues to hold the property.

Columbus Gold Qualified Person

Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of the Browns Canyon, Bolo, Eastside, Petes Summit, Combs Peak, Hughes Canyon, Big Lime and Chaos Creek projects discussed herein. Mr. Wallace is the President of Columbus Gold and the principal of Cordex, which is conducting exploration and project generation activities for Columbus on an exclusive basis.

Navaho Qualified Person

Mr. Mark Dugmore, B.App.Sc., M.Sc., who is a Member of The Australian Institute of Mining and Metallurgy is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of the Navaho projects reported herein. Mr. Dugmore is employed by Navaho.

Sniper Qualified Person

Scientific and technical information contained in this news release pertaining to work conducted by or on behalf of Sniper has been reviewed and approved by Douglas H. McGibbon, a director and the Vice-President, Exploration of Sniper, who Sniper has reported to be a "qualified person" within the meaning of National Instrument 43-101.

ON BEHALF OF THE BOARD,

Robert Giustra
Chairman & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

For more information contact:

Investor Relations
604 634-0970 or
1 888 818-1364
info@columbusgoldcorp.com

Forward looking statements
This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting the term of the Cordex Agreement, drilling, and the exploration plans of Columbus Gold and its partners. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation, Cordex's ability to put forward new projects for evaluation; that the Cordex Agreement will not be terminated earlier than the December 31, 2014 termination date set out therein; the ability to acquire necessary permits and other authorizations; environmental compliance; cost increases; availability of qualified workers and drill equipment; competition for mining properties; risks associated with exploration projects; mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; availability of funds for further exploration (both of the Company and of its partners); and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions that Cordex will continue to generate projects under the Cordex Agreement; that the parties will not terminate the Cordex Agreement earlier than its December 31, 2014 termination date; that the Company will be able to continue to pay applicable fees owing to Cordex under the Cordex Agreement; that drill plans will go into effect without changes that are material or otherwise; weather; that joint venture partners will have sufficient funds and inclination to continue to explore the projects set out herein; general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies including without limitation drill rigs; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and Columbus Gold undertakes no obligation to update any of the foregoing except as required by law.

For more information on Columbus Gold go to: www.columbusgoldcorp.com Join our Email List



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Columbus Gold Corporation

DEVELOPMENT STAGE
CODE : CGT.V
ISIN : CA1991711096
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Columbus Gold is a gold development stage company based in Canada.

Columbus Gold develops gold and silver in USA, and holds various exploration projects in USA.

Its main asset in development is SILVER DOME in USA and its main exploration properties are DUTCH FLAT, WINNEMUCCA MOUNTAIN, SUMMIT PROJECT, UTAH CLIPPER, CRESTVIEW, LAURA PROPERTY, WHITE HORSE NORTH, AWAKENING, CHERT CLIFF, OVERLAND PASS, SCRAPER, RED HILLS PROPERTY, PETE'S SUMMIT, GUILD PROJECT, CLARA MORO, FOUR METALS PROPERTY, WHITE CANYON MINE, HUGHES CANYON, GOLDEN MILE, WEEPAH, WHITE HORSE FLATS, DEL ORO, BOLO, EASTSIDE (NEVADA), MILL CANYON (NEVADA) and SPRING in USA and PAUL ISNARD in French Guyana.

Columbus Gold is listed in Canada and in United States of America. Its market capitalisation is CA$ 49.3 millions as of today (US$ 34.5 millions, € 31.9 millions).

Its stock quote reached its highest recent level on December 31, 2007 at CA$ 1.89, and its lowest recent point on November 14, 2008 at CA$ 0.10.

Columbus Gold has 142 920 000 shares outstanding.

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Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.24+2.13%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.20+7.89%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.90+1.60%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 51.43-0.46%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+0.00%Trend Power :